CBN Demands Price Cuts From Cement Manufacturers

Cement manufacturers have been urged by the Central Bank of Nigeria (CBN) to consider lowering the high cost of cement.

Godwin Emefiele, the Governor of the Central Bank of Nigeria, made the announcement during the official commissioning of the BUA cement line 4 plant and the groundbreaking of line 5 in Sokoto.
“Manufacturers in the construction sector must take immediate action to bring down the price of building materials in Nigeria,” Emefiele said.

Cement prices increased by 44% from December 2020 to January 2022, affecting the prices of products such as blocks, rings, and other items that use cement as a major ingredient in their manufacturing.

Cement prices have risen from N3,200 to N4,600 in the last six months.

Construction companies have called on cement and steel manufacturers to do something about the skyrocketing prices of these two essential items in the construction sector, Emefiele said at the event.

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“This sector is one of the most important in the economy, contributing to job creation and growth in our country.” We recognize that some of our cement manufacturers produce for both the domestic and export markets, but we urge them to focus more on the domestic market in order to reduce prices.

“On our part, the CBN wishes to reaffirm its commitment to providing necessary support for the importation of spare parts, plants, and equipment required to expand the production capacities of our cement plants in the country.”

According to Emefiele, as part of the Buhari administration’s efforts to boost industrial productivity and conserve foreign exchange reserves, the government decided in 2015 to restrict access to foreign exchange for imports of 43 items that could be produced in Nigeria but for which billions of dollars were spent on imports each year.